This is perhaps one of the hardest financial times in the country. Several factors such as inflation and taxes have left Kenyans with less to spend. Hence, adaption to surviving during such times is a necessary skill that we all need.
Economic challenges require a more conservative approach to make it through. Some of these will require adjusting to luxurious lifestyles and doing away with some unnecessary spending completely.
Below are some tips on how to survive with little money in Kenya.
These tips are doable and require discipline and consistency to achieve.
1. Ensure your rent is not more than 20% of your income
Housing costs take a big chunk of most people’s income. Although we all admire living in a bigger and safer house, there is a limit to what you should spend on housing.
This amount should be tied to your income and the aim is to avoid overspending. Hence, 20% is the recommended threshold especially if you are renting. Using 20% is a more scientific approach ensuring that you have more left to spend.
By calculating this amount, it becomes easier to settle on the right estate and house.
2. Avoid eating out
Eating out costs more. Hence, during these hard financial times, target to cook at home regularly. This will help in saving the little money available. It is also healthier and ensures you cook your choice both quantitatively and qualitatively.
Cooking at home also helps embrace you carrying lunch to work to limit the temptations of eating out.
3. Shop in price-friendly places
If you are used to shopping in high-end places such as malls, it is time to familiarize yourself with other price-friendlier shopping areas. As an example, visit the market to buy groceries instead of buying them from a supermarket.
It is also necessary to shop in bulk as it comes with a bigger discount. Buying in bulk also reduces the number of times you have to do shopping helping save on other related costs such as transport and delivery.
You should also learn the old art of bargaining to always get a better deal. This In the long term will result in ensuring there is money left that you can allocate to other needs.
4. Save at least 20% of your income
As times get harder financially, you don’t want an emergency to cripple you. Hence, it is important to save part of your income to mitigate such occurrences.
Some of these include diseases and job loss. It is prudent to have at least 6 months of your monthly expenses in your savings. This helps you get back on your feet in case of a job loss.
Lack of savings means living on a thin wire and in case things go south, you are left exposed and vulnerable.
You should always save first before spending. There are various saving platforms that you can use depending on your needs. Some of these include Saccos and Money Market Funds.
5. Start a Side Hustle
An extra source of income is a much-welcome intervention when little money is not adequate. Hence, you should actively do something extra as long as it will help boost income.
Some of these extras include starting a physical business, investing in financial markets, or freelancing with one of the many online jobs.
The best side hustle should be one that you understand and can do during your extra time.
6. Paying off your debts
Debts can become huge money takers especially if they are mismanaged. Hence, focus on clearing your debts faster as it helps save in interest payments and reduce the risk of defaulting penalties.
If it is a necessity to get debt, ensure to do so through regulated financial institutions such as banks and saccos as they have moderate interest rates. Lowering your cost of debt should be a priority in ensuring you achieve more savings.
